BNP Paribas Asset Management adopts Euronext CAC 40 ESG Index

September 20, 2021

BNP Paribas Asset Management (‘BNPP AM’) announces that the BNP Paribas Easy CAC 40 UCITS ETF will now replicate the CAC 40 ESG GR[1], administered by Euronext and launched on 22 March 2021.  The change means that BNPP AM now manages the first French market index fund to track this index.  The index consists of 40 mainly French companies with the best environmental, social & governance (‘ESG’) practices.

These companies, constituents of the Euronext CAC Large 60 Index, are chosen on the basis of ESG data provided by VE, part of Moody's ESG Solutions, in accordance with the requirements of the French Ministry of the Economy & Finance’s SRI[2] label (Label ISR).  The index also incorporates exclusions aligned with the principles of the United Nations Global Compact and applies screening to companies involved in activities related to coal, controversial weapons and tobacco[3].  Finally, the approach favours those companies with the best extra-financial ratings irrespective of their sector (‘Best in Universe’), by excluding a minimum of 20% of the lowest rated companies in the universe.  Index constituents are reviewed quarterly[4].

To reflect this index change, BNP Paribas Easy CAC 40 UCITS ETF will be renamed BNP Paribas Easy CAC 40 ESG UCITS ETF.  The objective and strategy of the fund are also changing, in line with the methodology of this new index.

Isabelle Bourcier, Head of Quantitative & Index Management at BNPP AM, comments:

"This launch is part of our long-standing sustainable investing DNA and is testament to our innovative approach.  Our long term strategic positioning within ESG ETFs enables us to meet growing investor demand, and we are proud to offer the first index fund listed on Euronext's new CAC 40 ESG index."

Stéphane Boujnah, Chief Executive Officer and Chairman of the Management Board of Euronext, comments:

“Six months after the creation of the CAC 40 ESG® Index, Euronext welcomes its the adoption by BNP Paribas Asset Management.  The launch of this first index fund replicating the CAC40 ESG® reflects the growing interest of investors in ESG criteria.  We welcome the key role of ESG indices in accelerating the transition to more responsible and sustainable growth."

Key Fund Characteristics (as at 20 September 2021)

ETF Name:     BNP Paribas Easy CAC 40 ESG UCITS ETF
ISIN Code:     FR0010150458
Share type:     Distribution
Replication method:     Physical
SFDR(a):     Article 8
AMF Category(b):     1
OCR(c):     0.25%
SRRI(d):     6

(a) Sustainable Finance Disclosure Regulation 2019/2088 of the European Parliament and of the Council of 27 November 2019 on information to be provided on sustainable development in the financial services sector.  Article 8 - product promoting environmental or social characteristics.

(b) AMF (Autorité des marchés financiers) Doctrine Category 1 - commitment approach.

(c) Ongoing charge (on an annual basis)

(d) Synthetic Risk and Reward Indicator is determined on a scale of 1 to 7 (7 being the highest level of risk). It is calculated on a periodic basis and may therefore change over time.  Regular consultation of the Fund's KIID/DICI is recommended.

Investments in the fund are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. The funds described present a risk of capital loss. For a more complete definition and description of risks, please refer to the prospectus and KIID of the funds. Before subscribing, you should read the most recent version of the prospectus and KIID, which are available free of charge on our website www.bnpparibas-am.com.

Risk of taking ESG criteria into account: The absence of common or harmonised definitions and labels regarding ESG and sustainability criteria at the European level may lead to different approaches on the part of management companies when setting ESG objectives. It also means that it may be difficult to compare strategies that incorporate ESG and sustainability criteria as the selection and weightings applied to certain investments may be based on indicators that may share the same name but have different underlying meanings. When assessing a security based on ESG and sustainability criteria, the management company may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may at present be incomplete, inaccurate or unavailable The application of responsible business conduct standards as well as ESG and sustainability criteria in the investment process may lead to the exclusion of securities of certain issuers. As a result, the Fund's performance may sometimes be better or worse than that of funds with a similar strategy.

- ENDS -

Footnotes

  1. ^ [1] Dividends reinvested
  2. ^ [2] Socially responsible investment
  3. ^ [3] The index excludes companies involved in unconventional fossil fuels, the production of tobacco and certain types of weapons that may be classified as controversial, as well as companies facing recent controversy that could compromise alignment with the principles of the United Nations Global Compact.
  4. ^ [4] Between each index rebalancing, companies that are the subject of controversy relating to the principles of the United Nations Global Compact will be removed from the index five days after an announcement by VE (formerly Vigeo Eiris).

BNP PARIBAS ASSET MANAGEMENT UK Limited, ‘the investment company’, is authorised and regulated by the Financial Conduct Authority.  Registered in England No: 02474627, registered office: 5 Aldermanbury Square, London, England, EC2V 7BP, United Kingdom.

This material is produced for information purposes only and does not constitute:

1.          an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or

2.          investment advice.

This material is issued and has been prepared by the investment company.  It contains opinions and statistical data that are considered lawful and correct on the day of their publication according to the economic and financial environment at the time.  This document does not constitute investment advice or form part of an offer or invitation to subscribe for or to purchase any financial instrument(s) nor shall it or any part of it form the basis of any contract or commitment whatsoever.

Whilst the fund described herein has been established as a UCITS (in accordance with the UCITS Directive) in Luxembourg, it has not been registered in the UK, therefore the promotion of this fund and the distribution of this document in the UK are accordingly restricted by law.

This document is provided without knowledge of an investors’ situation.  Prior to any subscription, investors should verify in which countries the financial instruments referred to in this document refers are registered and authorised for public sale.  In particular financial instruments cannot be offered or sold publicly in the United States.  Investors considering subscriptions should read carefully the most recent prospectus and Key Investor Information Document (KIID) agreed by the regulatory authority, available on the website.  Investors are invited to consult the most recent financial reports, which are also available on the website.  Investors should consult their own legal and tax advisors prior to investing.  Given the economic and market risks, there can be no assurance that the financial instrument(s) will achieve its investment objectives.  Their value can decrease as well as increase. In particular, changes in currency exchange rates may affect the value of an investment.  Performance that is shown net of management fees and is calculated using global returns with time factored in, with net dividends and reinvested interest, and does not include subscription-redemption fees, exchange rate fees or tax.  Any gross of fees performance included in this material do not reflect the deduction of commission, fees and other expenses incurred.  Returns will be reduced after the deduction of such fees.  Past performance is not a guarantee of future results.

This document is directed only at person(s) who have professional experience in matters relating to investments (‘relevant persons’).  Any investment or investment activity to which this document relates is available only to and will be engaged in only with Professional Clients as defined in the rules of the Financial Conduct Authority.  Any person who is not a relevant person should not act or rely on this document or any of its contents.

All information referred to in the present document is available at www.bnpparibas-am.com.

This is a Marketing Communication for Professional Investors only.  No assurance can be given that any forecast, target or opinion will materialise.

As at September 2021.

 

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